The rise of synthetic media and deepfake technology is no longer just a theoretical problem—it’s breaking real systems, in real-time, and right under our noses.
A newly unmasked cybercriminal group dubbed “Grey Nickel” is systematically attacking digital verification frameworks across the global financial sector. These aren’t lone wolves operating from basements. This is coordinated, AI-fueled cybercrime on a scale that banks and crypto platforms are clearly not ready for.
Identity Tech Under Fire as Face-Swapping and Deepfakes Go Mainstream
Remote identity verification has become the backbone of digital onboarding—especially for banks, fintech startups, and crypto exchanges. But what happens when the tools meant to verify your face are fooled by a fake one?
“Grey Nickel” is making that nightmare real. Active since at least mid-2023, the group’s tactics include face-swapping, video injection, and subtle metadata alterations that can hoodwink single-frame “liveness” checks used in KYC procedures. These aren’t fuzzy, poorly lit fakes either—they’re hyper-realistic, AI-generated avatars designed to mimic real users with eerie precision.
According to Dr. Andrew Newell, Chief Scientific Officer at iProov, this isn’t some small technical blip. “Financial services are now facing an identity assurance gap,” he warns. The old tools just can’t cope with the sophistication of AI-driven fraud anymore.
From Spoofing to Sophistication: The Fraud Landscape Has Shifted
This isn’t your average phishing attack or brute-force login attempt. Grey Nickel’s operations suggest a strategic pivot by cybercriminals toward full-scale industrialisation of synthetic fraud.
Just one year ago, most digital ID hacks revolved around replaying videos or flashing printed faces. Those tactics are now obsolete.
Now, we’re talking about:
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Custom mobile apps (Android and iOS) that can inject deepfake footage into onboarding flows
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“Deepfake-as-a-service” offerings that package stolen credentials with hyper-real avatars
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Real-time AI-generated facial animations that match stolen voice data
These are tools being sold, rented, and reused. And they’re not just aimed at traditional banks—crypto platforms, digital wallets, and neobanks are all in the crosshairs.
One sentence for pause.
Financial Platforms in the Crosshairs: Who’s Most at Risk?
Grey Nickel’s campaign spans Asia-Pacific, EMEA, and North America. But not every target is affected equally. According to early analysis, the attack surface varies based on which verification tech is in place—and how outdated it is.
Here’s a quick breakdown based on iProov’s observations and industry estimates:
| Platform Type | Most Common Defense Used | Risk Exposure (Est.) | Notes |
|---|---|---|---|
| Traditional Banks | Static facial recognition | Medium | Older systems struggle with deepfakes |
| Neobanks | Single-frame liveness checks | High | Fast-growing firms often lack layered defense |
| Crypto Exchanges | Video KYC, AI checks | Very High | Popular targets due to low regulation |
| Digital Wallets | Mixed methods | Medium to High | Depends heavily on region and vendor |
The red flag here is pretty clear: crypto and fintechs are the juiciest fruit on the tree for these criminals.
Not Just Grey Nickel: The Whole Cybercrime Ecosystem Is Upgrading
Grey Nickel may be the headline act right now, but they’re far from alone. iProov’s researchers have discovered a sprawling network of cybercriminals working across the fraud-as-a-service chain.
Think of it like a production line.
One group steals IDs. Another builds deepfake generators. A third packages everything into a “ready-to-use” KYC attack toolkit. And you don’t need to be a hacker to use it—just pay a subscription, and you’re in business.
This speaks volumes about how easy it’s becoming to orchestrate fraud at scale.
And here’s something chilling: iProov has seen evidence of groups advertising AI-powered voice synthesis to pair with fake faces, creating fully animated “humans” capable of passing video interviews. Imagine that being used to apply for a loan, open a bank account, or even pass employee verification.
Now imagine it happening 10,000 times a day.
Industry Response: Behind the Curve or Buying Time?
Financial institutions are aware of the threat—no doubt. But the race between offense and defense is skewed, and right now, the criminals are lapping the defenders.
Some are rushing to adopt multi-frame liveness detection, behavioral biometrics, and real-time anomaly detection. But even these upgrades might not be enough if implementation drags or budget priorities shift.
And then there’s the compliance blind spot. In many regions, regulations around digital ID checks remain vague, outdated, or easy to meet with basic measures. That leaves a huge opening for exploitation.
One bank security officer, who asked not to be named, said bluntly: “Our biggest fear isn’t the hackers. It’s the regulators not catching up fast enough.”
What’s Next? A Battle for Digital Trust
There’s no sugarcoating it—trust in digital identity systems is being tested like never before.
And the truth is, even the best tech won’t stop these attacks unless there’s a cultural shift inside institutions. That means treating cybersecurity like a core business priority, not a compliance checkbox.
It also means accepting that artificial intelligence is not just a tool for innovation—it’s a weapon. In the wrong hands, it’s the perfect disguise.
